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CAA ICE Week Competition 2014
- 1. Group 17: Keisha Rampersaud, Scott Walter Maya Feldberg, Jenna Marie Ducut
- 2. AGENDA • Recommendation • Consumer Profiles • Competitors • Pillars of Success • Implementation • Risks • Expected Results
- 3. Recommendation Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Implement New VR Technology Update Current Curriculum Improve Divisional Communication Develop Marketing Plan
- 4. Recommendation Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Implement New VR Technology Update Current Curriculum Improve Divisional Communication Develop Marketing Plan
- 5. Recommendation Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Implement New VR Technology Update Current Curriculum Improve Divisional Communication Develop Marketing Plan
- 6. Recommendation Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Implement New VR Technology Update Current Curriculum Improve Divisional Communication Develop Marketing Plan
- 7. Target Offering CAASCO ADSN Curriculum Driving Schools With/Without MTO Curriculum North York Driving School Parents of Novice Drivers Corporates Recomme ndation Consumer Profiles Competit ors Pillars of Success Implemen tation Risks Expected Results
- 8. Target Offering CAASCO Driving Schools With/Without MTO Curriculum North York Driving School Parents of Novice Drivers Corporates Recomme ndation Consumer Profiles Competit ors Pillars of Success Implemen tation Risks Expected Results • Objective: o Promote road safety • Value: o Quality of curriculum o Attraction of customers o Meeting classroom capacity o Making money
- 9. Target Offering CAASCO ADSN Curriculum Driving Schools With/Without MTO Curriculum North York Driving School Parents of Novice Drivers Corporates Recomme ndation Consumer Profiles Competit ors Pillars of Success Implemen tation Risks Expected Results • Objective: o Find a driving school • Value: o Quality of the program o Price o Location o Availability of classes
- 10. Target Offering CAASCO ADSN Curriculum Driving Schools With/Without MTO Curriculum North York Driving School Parents of Novice Drivers Corporates Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results • Objective: o Find a driving education program that emphasizes on refreshers and employee safety training • Value: o Quality of the program o Location o Availability of classes
- 11. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Competitors Offering CAASCO ADSN Curriculum North York Driving School
- 12. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Competitors Offering CAASCO ADSN Curriculum North York Driving School • use of online components • 20 - 10 - 10 format • cut down on in-class time • freed up classroom availability
- 13. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Competitors Offering CAASCO ADSN Curriculum North York Driving School • Reputable program and large reach across Ontario • Competitively priced • Offer a range of course offerings at different price points
- 14. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Competitors Offering CAASCO ADSN Curriculum North York Driving School • Use of simulators • creates a pull in demand for their service • costly price creates a high switching for independent driving schools
- 15. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Sustainability Stay consistent with core values and value proposition Financial sustainability to achieve break-even in the long run Differentiate services provided to generate employee and customer interest
- 16. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results INTRODUCTION OF OCULUS RIFT • Virtual Reality Headset • Interactive and highly realistic
- 17. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results THE OCULUS RIFT
- 18. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results SHORT TERM (1-2 years) • Greater coordination • Hire team of 8 • Cost $625,000 • E-books • Learning modules • High school newsletters • Birthday incentives • Cold calls • Pamphlets
- 19. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results MID / LONG TERM (3-10 years) • E-books, online modules, simulation, MTO approval • Cost $1,000 • Market to schools with and without ADSN • Additional instructor • Hire one service manager
- 20. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results Imitation of Software Idle Capacity of Driving School
- 21. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results EXPECTED RESULTS Sustainability
- 22. Recomme ndation Consumer Profiles Competi tors Pillars of Success Implemen tation Risks Expected Results EXPECTED RESULTS 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sales Driver Ed1 261,877 274,971 302,468 332,715 365,986 402,585 442,843 487,128 535,840 546,557 ADSN 2 95,841 109,902 138,124 81,722 - - - - - - New ADSN 3 - - - 110,772 263,442 301,542 328,212 347,262 366,312 385,362 Net Sales 357,718 384,873 440,592 525,209 629,428 704,127 771,055 834,390 902,152 931,919 COGS (172,669) (173,742) (150,000) (154,500) (162,225) (170,336) (178,853) (187,796) (197,186) (207,045) Gross Profit 185,049 211,131 290,592 370,709 467,203 533,791 592,202 646,594 704,967 724,874 Expenses Advertising & Promotion4 (23,707) (40,000) (42,000) (44,100) (46,305) (48,620) (51,051) (53,604) (56,284) (59,098) Total Admin. Salaries & Benefits (243,988) (246,428) (248,892) (251,381) (253,895) (296,895) (299,864) (302,862) (305,891) (308,950) Project Expenses5 - (814,330) - - - - - - - - Total General Expenses6 (80,036) (85,050) (85,901) (86,760) (87,627) (88,503) (89,388) (90,282) (91,185) (92,097) Total Expenses (347,731) (1,185,808) (376,793) (382,241) (387,827) (434,019) (440,304) (446,749) (453,360) (460,145) Operating Income 532,780 (974,677) (86,201) (11,532) 79,376 99,772 151,899 199,845 251,607 264,729 Income Taxes - - - - (15,081) (18,957) (28,861) (37,971) (47,805) (50,299) Net Income 532,780 (974,677) (86,201) (11,532) 64,295 80,815 123,038 161,875 203,801 214,431 Cash Provided BY (Used In) Operating Activites 357,718 384,873 440,592 525,209 629,428 704,127 771,055 834,390 902,152 931,919 Financing Activities (520,400) (331,478) (526,793) (536,741) (550,052) (604,355) (619,157) (634,544) (650,546) (667,190) Investing Activities - (814,330) - - - - - - - - Change in Cash (162,682) (760,935) (86,201) (11,532) 79,376 99,772 151,899 199,845 251,607 264,729 Free Cash Flow (162,682) (923,617) (1,009,818) (1,021,350) (941,973) (842,201) (690,303) (490,457) (238,851) 25,879 1 Driver's Ed Revenue is assumed to grow at a rate of 10% as awareness rises for program grows. 2 in 2016 50% of schools have switched to new curriculum, ADSN continues to grow at a rate of 10 schools per year. 3 in 2016 50% of schools have switched to new curriculum , ADSN continues to grow at a rate of 10 schools per year, with an increased revenue from $1000 yearly fee for use of software. 4 Advertising & Promotion budget will grow at a rate of 5% to reach a larger consumer base. 5 See Exhibits 9.1 below for cost breakdown on project. 6 General Expenses will drop in 2015 as we replace textbook with ebook. Expenses will increase with consumer base at a rate of 1% each year.
- 23. THANK YOU